Real Estate Chapter 7 Essential Elements of a Valid Contract

Offer and Acceptance

When one party offers and another party accepts the offer, an agreement exists between two parties. An offer is an indication by one person to another of their willingness to contract on certain terms without further negotiations. A contract is then formed if there is express or implied agreement. When acceptance of an offer has been communicated to the offeror by the offeree, a contact is formed between the parties.

Legal Consideration

Consideration is a benefit which must be agreed upon between the parties, and is the essential reason for a party entering into a contract. Consideration must be of value (at least to the parties), and is exchanged for the performance or promise of performance by the other party (such performance itself is consideration). In the absence of valuable consideration, there must be invaluable consideration which is "Love and Affection".

Legal Purpose

Contracts must be for legal purpose. Contracts to perform illegal acts or purposes are void.

Essential Elements of a Valid Contract

Offer and acceptance, legal consideration, competent parties, and legal purpose.

Competent Parties

Those of legal age and sound mind are considered to be competent parties. In order for a deed to be valid, the grantor must be legally competent. Incompetent parties would include minors (under the age of 18 in SC), insane persons, and intoxicated persons.